Category Customer Centric
If you’re wondering where your buyers went – Americans’ credit scores at new lows
From the GoTo, “just get me more eyeballs” day’s, until the fall of 2007, the web was awash with home equity money and easy credit. Not to mention that every year new shoppers were jumping on to the web. Those were the days. Some companies, aware of the ephemeral nature of that boom, used that money to improve their businesses. Others were blinded by greed.
Lending standards are more stringent and that means fewer people with credit. Many have been pummeled by material excesses propelled by a desire to keep up with “the Jones”. The problem was that “the Jones used to be next door neighbors. Somewhere along the line “the Jones” became the rich and famous. Idealized people we could never keep up with.
We’re reminded of a line written by the English mystic, William Blake: “The greatest danger a man (or woman) faces as they walk the path through life, is the seduction of the material world”.
Here’s an article about how an increasing number of Americans are considered poor risk, the consequences they’ll face, and the price we’re all paying as a result.
Posted by eBrand Media Research Department in Customer Centric, Trend Tracker on July 13th, 2010
Sustaining Customer Relationships in a Diminished Economy
By Tom Polanski, EVP, eBrand Media and eBrand Interactive
When it comes to keeping your best customers, what methods do you use? The fact is, in a sluggish economy, cutting back on purchases and spending is what most consumers do first. Companies, on the other hand, figure they can afford to trim back their sales force, customer service staff, and their marketing budget. Those companies assume, without the support of sound statistical evidence, that they can manage search engine marketing, display advertising, and email retention programs in-house. They think they can handle it all themselves. Numerous case studies indicate otherwise while demonstrating that it is more cost effective and profitable to out-source to companies that specialize in a particular service.
Posted by Tom Polanski in Customer Centric, Tom Polanski, eBrand Interactive, eBrand Media on February 25th, 2010
Its more profitable to keep a customer happy! (Poor customer service costs $83 billion annually)
Genesys, with research firm Greenfield Online and Datamonitor/Ovum analysts, measuring the cost of poor customer service in the U.S., found that enterprises in the U.S. lose an estimated $83 billion each year due to defections and abandoned purchases as a direct result of a poor experience. Nearly two-thirds of consumers said they had ended a relationship due to customer service alone. The survey participants said that when they end a relationship, 61% of the time they take their business to a competitor.
The $83 billion overall cost of poor customer service in the us came from:
* Business abandoned and lost to entire industry, $32.4 billion
* Customer churn and defections within industry, $50.6 billion
Furthermore, the problem has become more complicated as customer interactions move beyond the contact center. According to numerous industry researchers, more than 90% of all transactions initiated over the Web are abandoned before any transaction is completed. And virtually no researchers have accurately measured the value of customer service across communication channels, says the report.
Across 16 key economies (countries), the total loss for poor customer service in US dollars is $338 billion annually or the average value of each customer relationship lost to a competitor or abandoned of $243. In addition, 86.4% of consumers would welcome extended offers or help during self-service transactions.
The biggest losers at the industry level are in cable & satellite TV, financial services, and consumer products. Nearly one quarter of consumers in the US said they abandoned a cable/satellite company in the past year, resulting in over $12 billion in lost revenue. And financial services companies suffered more than $10 billion of losses alone. Industries that were previously safe from competition, such as utilities in deregulated regions, are also feeling the pain, with $1.75 billion in lost revenue.
Posted by eBrand Media Research Department in Customer Centric on February 18th, 2010
Online flower prices grow as you go
By Bob Sullivan
Companies often advertise one price to lure customers into their stores, then charge a higher price. In days gone by, this was called “bait and switch.” Now, it’s called fees and surcharges.
On the Internet, this tactic has another fancy name: “landing price.” Advertisements include a low price to persuade customers to land on their e-commerce site. But by the time shipping and handling is piled on, the “out-the-door” price is substantially higher.
This tactic is most clear in the world of online florists, and most prevalent during Valentine’s Day. A quick survey of the top online florists shows that consumers using the two top sites typically pay at least 50 percent — and often as much as 100 percent — higher than the advertised price.
Take ProFlowers.com, which this week was running nearly ubiquitous ads with offers like this: $29.99 for a dozen roses and a free vase. But any consumer wanting the arrangement delivered on Valentine’s Day will pay at least $55, after shipping, taxes, handling and a Saturday delivery fee are added. Shoppers who agree to early delivery on Feb. 12 will save $10, but will still pay around $45 (when $10 shipping, $1.99 handling and about $3 in taxes are added in). That’s still 50 percent above the advertised price.
Making matters worse for shoppers: The total price isn’t revealed until the last possible moment — after the recipient’s name and address, credit card number, billing address and even the “Love, Bob,” note are entered. This reporter counted seven screens before the real price was unmasked. After all that typing, consumers are less likely to abandon the transaction.
ProFlowers says all its advertisements indicate customers will face additional fees
“ProFlowers advertising…clearly states that shipping and handling are additional costs,” spokesman Mike Rosen said in an e-mail. He said the company has not received any complaints that its advertisements are deceptive.
Rosen also pointed out that consumers can add the total cost on their own within the first click or two. But to do that, consumers must notice and click on a link named “details” while picking the delivery date.
“I don’t think you give consumers enough credit,” Rosen countered. “In this day and age customers understand this process better … and expect to pay shipping charges.”
Posted by Tom Polanski in Customer Centric on February 12th, 2009